You have a knack for making playable-looking game world, congrats. Small edit to show three things
Go the extra mile on softening/realizing the background, it really will help immersion. Soft will also separate better from hard in the foreground.
The water needs a brighter top surface.
And a way to get the flag to seem more part of the screen is to use colors of the tileset on it. It's not just a tidy idea, it's also good for getting everything to look as if it belongs.
Good luck with finishing this project!